Week 1

Question 1

Debit transactions always on what side?

Answer 1

left of the journal entry

Question 2

Credit Transactions always on what side of the journal ?

Answer 2

right of the journal entry

Question 3

Name 5 types of accounts

Answer 3

Assets, Liabilities, Equity, Revenue, Expenses

Question 4

What is the basic accounting equation?

Answer 4

Assets = Liabilities + Equity

Question 5

What is the expanded accounting equation ?

Answer 5

Assets + Expenses = Liabilities+ Revenue + Equity

Question 6

What is the acronym to use for what accounts fall on what side of the T chart

Answer 6

DEA / LER

Question 7

General Journal is ?

Answer 7

individual transactions kept in a book

Question 8

General Ledger is ?

Answer 8

the accumulation of all the transactions broken down into groupings

Question 9

I sold equipment for cash. What accounts

Answer 9

Equipment gets credited, cash gets debited

Question 10

What accounts would you use for customer buys product with credit.

Answer 10

Accounts Receivable would get debited, Revenue would get credited

Question 11

Name the 4 financial statements

Answer 11

The income statement, The balance sheet, cash flow statement, the statement of equity

Question 12

Define Deferrals

Answer 12

transactions that have been paid for but services not completed

Question 13

Accruals

Answer 13

future payments or expenses (rent paid for 6 months)

Question 14

Tax Adjustments

Answer 14

tax credits owed to be paid from previous years

Question 15

An adjusted trail balance

Answer 15

listing of all accounts with final ending balance after all the adjustments have been factored in

Question 16

What statement gives you revenue and expenses

Answer 16

Income statement

Question 17

What statement gives you owners capital change over time ?

Answer 17

the statement of equity

Question 18

What statement gives you assets, liabilities and equity

Answer 18

the balance sheet

Question 19

What statement gives you inflow and outflow of cash

Answer 19

the statement of cash flow

Question 20

What account should be $0 after ending an accounting period

Answer 20

Revenue

Question 21

Performs a service and paid right away. Invoice or Receipt

Answer 21

a sale receipt

Question 22

Performs a service and will be paid at a later date

Answer 22

an invoice

Question 23

Customer returned an item and you offer a credit

Answer 23

Credit memo

Question 24

True or False. You need an income statement to complete a statement of equity

Answer 24

true